Income Tax Ordinance (XXXI of 1979)‑‑‑

‑‑‑‑S.136(1)‑‑‑Reference to High Court‑‑‑Deduction‑‑‑Wealth tax liability could be allowed as an admissible deduction under the repealed Income‑tax Act, 1922.

C.I.T., Karachi v. Zakia Siddiqui 1989 PTD 135; C.I.T., Central Zone‑A, Karachi v. S.M. Naseem Allahwala (1991) 64 Tax 31 and C.I.T., Zone‑A v. Arif Latif 1999 PTD 4120 rel.

Safdar Mehmood for Counsel for Petitioner.

Mirza Anwar Baig for Respondent.

ORDER

NASIM SIKANDAR, J.‑‑‑This is a case stated by the Lahore Bench of the Income‑tax Appellate Tribunal at the instance of the Commissioner of Income‑tax, Zone‑A, Lahore. The question framed for our reply and consideration reads as under:‑‑‑

"Whether on the facts and in the circumstances of the case the Tiibunal was justified in allowing wealth tax liability as an admissible deduction under the repealed Income‑tax Act, 1922?

2. At the outset both the learned counsel agree that the matter in issue stands decided through various judgments including re: C.I.T., Karachi v. ZakiaSiddiqui 1989 PTD 135, re: C.I.T., Central Zone‑A, Karachi v. S.M. Naseem Allahwala (1991) 64 Tax 31 re: C.I.T. Zone‑C, Karachi v. B.D. Avari and C. I. T., Zone‑A v. Arif Latif 1999 PTD 4120. In the last judgment to which one of us (Nasim Sikandar, J.), was a party an affirmative answer was returned to a similar question.

3. For the reasons stated in that order re: CIT v. Arif Latif (supra) the question posed in this reference application is also answered in the affirmative.

C.M.A./M.A.K./118/LReference answered.